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Australia shares advance as earnings season rolls on; NZ rises

Published 14/08/2017, 01:36 pm
© Reuters.  Australia shares advance as earnings season rolls on; NZ rises
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By Shashwat Pradhan

Aug 14 (Reuters) - Australian shares recovered on Monday helped by broadly optimistic earnings, with the financial and material sectors driving most of the gains.

The S&P/ASX 200 index .AXJO rose 0.7 percent, or 41.86 points, to 5,735 by 0304 GMT.

The gains were broad-based with all sectors in the black.

"We are in the middle of the reporting season, where a lot of the focus is. Some of the biggest moves are reflecting the results they have put out," said Michael McCarthy, chief market strategist at CMC Markets.

Bendigo and Adelaide Bank BEN.AX was the top percentage gainer on the benchmark after it posted a 4 percent increase in its cash earnings for the 12-months ended June 30. Commonwealth Bank of Australia CBA.AX gained more than 1 percent after it said its chief executive Ian Narev would retire by June 2018, in the wake of a scandal over money laundering and terror financing allegations. materials sector was among the best performing with mining giants BHP Billiton (LON:BLT) BHP.AX and Rio Tinto (LON:RIO) RIO.AX edging up 0.4 percent and 0.6 percent, respectively, after London copper and aluminium prices advanced on Monday, holding near recent two-year peaks on a weaker dollar. MET/L

In other sectors, technology stocks rose sharply aided by Carsales.Com Ltd CAR.AX , which climbed as much as 3.3 percent to hit a record high. The auto classifieds website operator reported an 8 percent increase in its revenue for fiscal 2017 last week.

"Carsales reported strongly. The market initially sold it off but now seems to be taking back some of the selling that we saw last week after their results," McCarthy added.

Meanwhile, Ansell Ltd ANN.AX slipped as much as 5.8 percent to a one-year low after the rubber-products maker said its full-year profit fell 7.2 percent, missing forecasts, as it was hurt by climbing raw material costs and one-off acquisition charges. other stocks in the red was Aurizon Holdings Ltd AZJ.AX , down about 1.5 percent after the coal rail operator said it had decided to quit its freight business. Zealand's benchmark S&P/NZX 50 index .NZ50 inched up 0.4 percent, or 33.11 points, to 7,752.22.

Utilities, materials and consumer discretionary stocks together accounted for more than half of the gains.

Sentiment was boosted by New Zealand's buoyant retail sales. Data on Monday showed retail sales volumes jumped 2 percent in the second quarter, beating expectations and buoyed by high-profile international sporting events that are attracting a flood of tourists to the country. Energy GNE.NZ and Sky Network Television SKT.NZ were among the top gainers, rising 2.7 percent and 1.9 percent, respectively.

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